$13 Million To Pay For Radios, Roads

December 15, 1999|STAFF REPORTS

Delray Beach — City commissioners on Tuesday night approved two bank loans totaling $13.1 million that will help purchase a new communications system, repair roads and upgrade underground utility lines.

The loans are from SunTrust Bank. The first, a $4 million loan to be wrapped up before the end of this year, will pay for new radio equipment for police, fire and other city employees.

The second loan, $9.1 million, scheduled for early next year, will pay for repairing some of the city's most damaged roads and drainage pipes.

Finance Director Joseph Safford told commissioners that in order to get the best interest rate, the city could borrow only $4 million this year. That's because many banks have a $10 million annual cap on borrowing if the borrower wants the best rate. The city will pay 5.02 percent.

Safford said the owner of an average home in the city would see a property tax increase of about $20 yearly if property values remained stable.